LONDON STOCK MARKETS.

New Zealand Herald, Volume LXVIII, Issue 20875, 18 May 1931, Page 5

LONDON STOCK MARKETS.

A GENERAL DEPRESSION.

NEW BANK RATE WELCOMED. (Received May 17, 5.5 p.m.) LONDON. May 16. The financial event of (lie week was the reduction in tlic bank rate to the lowest level since 1909 This was generally expected when the New York rate was reduced to per cent. last week, hut it came rather sooner than was anticipated. Following on the New York reduction, the action of the Bank of Eng land is regarded as an indication of cooperation between international bankers to help the world's trade recovery by cheaper money. It is not expected that the reduction will have much immediate effect, as money rates in the London open market are still well above those in New York, Paris, Amsterdam and Brussels, but it is welcomed as a sign ol bettor times ahead. The Stock Exchange account just concluded is described as one of the worst experienced for a long time. The only bright spot has been the gilt-edged market, which remained steady, while all others were depressed, and it moved upward on Thursday, when the bank rate was reduced. But all other sections have been in the slough of despond, with persistent heavy liquidations, falling prices, weakness in industrial stocks, owing to the low value of commodities, poor returns by numerous companies, and reduced dividends. An especially weak section has been the Home railways, which relapsed into new low records on heavy selling frdm all quarters. Foreign securities have also been considerably affected. As an illustration of the nervousness in the markets, one financial writer says a dealer in a certain line of Dominion stocks found the price go against him two points in an hour, because it was believed ho wanted to sell. On the other hand, a broker by buying £SOOO of foreign bonds put the price up 3 points. In ordinary times such a transaction would not havo moved the price.

BUILDING SOCIETY. CO-OPERATIVE TERMINATING. PAST YEAR UNDER REVIEW. The continued success of the operations of the Auckland Co-operative Terminating Building Society is reflected in the annual report to bo presented at the 34th annual meeting to bo held on May 27. The demand for shares in new groups still continues, although not to the same extent as in more prosperous years, says the report. The shortage of money has caused a falling off in demand, and in consequence only one group, the 71st, was opened in the past year. The liquidation of the older groups continues. Groups 2to 6 liavo received their final dividends; groups 7 to 20 are paying regular quarterly dividends; groups 21 and 22 have gone into liquidation and will commence paying dividends shortly, and group 23 probably will close this year. The groups in full operation have made steady progress. The first of the "cluster" groups, the 60th, 61st and 62nd, have become five years old, and have met. with heavy withdrawals. The 63rd, 64th and 65th groups will become five years old this year, thus increasing the heavy list of withdrawals. The income of the society has been well maintained, says the report, although affected by the period of depression through which the country is passing. The year's figure, £218,710, is very satisfactory considering the times. Receipts are reduced by the liquidation of the early groups, and unusually heavy withdrawals of shares in the later groups caused by tho abnormal state of business. No doubt this will change for the better in the course of time, the report predicts. The receipts since the inception of the society have reached £3,874,044. The amount appropriated for loans last year, £119.600, is further evidence of sound progress. Notwithstanding the exceptional times and uncertain state of the property market, the demand for loans has been well maintained. The advances made 6ince the commencement of the society now total £2,965,712, and repayments" £2,185,044, leaving a balance owing of £780.668, for which securities of ample value aro held.

The profits earner] in the past year amounted to £14.899, and the profits withdrawn to £9649, showing a net increase of £5250, compared with £2140 for the preceding year. The aggregate profits now total £214,442. A levy of 2s a share lias been sh'uck to meet working expenses for 1930-31 The directors retiring l>y rotation are Messrs. F. 0. Carr, W. Lambourne and J. W. Wiseman, who offer themselves for re-election.

LONDON DAIRY VALUES. PRODUCE BOARD'S REPORT. The New Zealand Dairy Produce Board has received the following market report from its London office, dated May 15, juices for the previous week being given in parentheses:— Butter.—New Zealand, salted, 108s to 110s (103s to 106s); unsalted, 110s to 114s (108s to 112s); first whey, 102s (98s); second whey, 100s (965); deliveries New Zealand this week, 1485 tons; in store, 6841 tons. Australian, salted, 104s tn 107s to 108s (101s to 104s); unsalted, 105s to 109s (104s to 108s). Deliveries Australian, 1325 tons; in store, 1675 tons. Argentine, unsalted, 104s to 106s (100s to 104s); South African, 94s to 100s (96s to 98s); Irish Cream, salted, 106s; Danish, f.0.b., 113s (110s); spot, 118s to 119s (118s); Dutch, unsalted, 112s to 116s (110s to 114s); Estonian, 106s to 108s (105s to 106s); Latvian, unsalted, 106s; Lithuanian, unsalted, 106s; Siberian, 99s to 100s (98s to 100s). Improved demand. Prices firmer. Retail prices unchanged: Danish Is 3d, New Zealand Is and Is Id. Cheese.—New Zealand, white, 48s to 50s (44s to 475); coloured, 50s to 53s (48s to 50s) ; Full Cream premium. Is. Deliveries New Zealand this week, 25,000 crates; in store, 183,552 crates. Market firm. Retail price unchanged, 7d. Canadian, white, 70s to 74s (70s to 745); coloured, 70s to 76s (72s to 765). Deliveries, Canadian, 3836 boxes; in store, 132.476 boxes. Market quiet. English finest farmers, 106s (100s to 106s). The board has also received advice from its agents in Canada as follows-Butter: New York, 23£ cents (lljjd); Montreal, 20 cAits (lOd). REPORTS FROM MERCHANTS. The New Zealand Producers' Co-opera-tive Marketing Association, Limited, has received the following cablegram from its London house, dated May 15:—Butter: New Zealand, 108s to ilOs; unsalted. |llos to 114s; Danish, 118s to 119s: 'Siberian, 995. Market firm, with more inquiry. Cheese: White, 48s to 50s; coloured, 50s to 535. Market firm. Messrs. A. 11. Turnliull and Company have received the following cablegram from W. Wcddel and Company, Limited, dated London. May 15:—Danish butter. 118s to 119s; New Zealand unsalted butter, 110s to 114s; salted. 108s to 110s Market firm. New Zealand cheese.— White, 48s to 50s: coloured, 50s to 535. Canadian cheese. —White, 70s to 745; coloured, 70s to 765. Market firm.